M&M Corp. began the year with 100,000 shares of $1 par common stock outstanding that was...

M&M Corp. began the year with 100,000 shares of $1 par common stock outstanding that was originally issued for $30 per share. During the year the following events happened.

1. The company paid a small stock dividend of 5% on May 1 when the fair market value of the shares was $35 per share.

2. The company declared and paid a property dividend of land that had a book value of $20,000 and a fair market value of $80,000 to common shareholders on June 3.

3. The company used the treasury method to retire 2,000 shares when the market price was $34 per share.

4. On November 1, the company declared a $2 cash dividend to shareholders of record on November 4. The company paid the dividend on November 15.

Answer the following questions:

1. The number of shares outstanding on December 31 is

2. The property dividend resulted in an entry to retained earnings of . Put a DEBIT entry as a positive. Put a CREDIT entry as a negative. If not entry is needed, type "NO ENTRY".

3. The small stock dividend resulted in an entry to common stock of . Put a DEBIT entry as a positive. Put a CREDIT entry as a negative. If not entry is needed, type "NO ENTRY".

4. The repurchase of treasury shares resulted in an entry to treasury stock of . Put a DEBIT entry as a positive. Put a CREDIT entry as a negative. If not entry is needed, type "NO ENTRY".

Expert Solution

ekkarill92 answered 2 years ago

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